MPX Bioceutical Corp (OTCMKTS:MPXEF) Set To Climb Higher

MPX Bioceutical Corp (OTCMKTS:MPXEF) has kept its outstanding growth path. In November, MPXEF kept buying everybody in the cannabis space and continued holding a good amount of cash. Its new feature is that the market is finally recognizing that it could become a winner in its industry. Consequently, it is helping its shareholders make incredible returns. Those with shares in the mid of December saw how their money doubled in just ten days period.

2 months chart for MPXEFAn incredible momentum drove the share price from $0.3 to touch the $0.9 mark before falling back down. Many in the market knew that the party was big on MPXEF. The volume shows it. An average daily volume of $2 million changed hands some days. We hope that our readers could have a look at the stock. Remember that we picked it two months ago for the first time.What happened?Undoubtedly, the regularization of the sale of cannabis in California helped the industry as well as MPXEF. However, as per our observation, MPXEF's stock returns were the highest amid competitors. In our opinion, the reason is the long list of recent acquisitions executed by MPXEF. The integration process is happening right now. If it is properly done, the share price could run even more.Let's review the company background for starters. MPXEF is headquartered in Toronto, Canada. The entity is quite old. It was created under the Business Corporations Act (Ontario) on April 2, 1974. The company is involved in the natural health products industry, engaged in the manufacturing and distribution of nutraceuticals, i.e. plant-based medicines, to the North American marketplace.The most critical is the pending application with Health Canada to produce cannabis products in Canada. The company already owns a lot of know-how acquired from its acquisitions. This means that if the approval is granted, the revenues could run. Bear in mind that a decent amount of work has been already done. That's not all. In our opinion, acquiring others has given MPXEF a large business network. The company knows who to call, and how the industry works. This fact is expected to enhance revenues once the products hit the market.We will not repeat all the acquisitions executed by MPXEF. Instead, just have a look at the list of entities controlled. Please note that this is a Canadian company. But, most interestingly, it also operates in the United States. Entities Controlled - MPX BIOCEUTICAL CO OTCMKTS:MPXEFFinancing - Private PlacementMPXEF has signed several financing agreements with several players. It is a good sign. Players are making their own due diligence and deciding to plow money into the company. MPXEF signed an agreement with Echelon Wealth Partners Inc and Canaccord Genuity Corp. They decided to help the company sell $25 million in equity. Please remark that these are big operators that are very selective with their clients. The results, which pleased the company, were released in December. Check the following words:“We are pleased with the investor response to the Offering... Our company will deploy these funds to continue to expand our footprint in the U.S. and Canadian cannabis sector, work diligently to grow both revenue and earnings and ultimately reward those old and new investors who have demonstrated confidence in our company, its management and its business plans.” SourceThe company is strong in MarylandFinancing and cash are not the only things to look at. Agreements with other operators are also critical. It shows that players in the industry are willing to work with MPXEF. Additionally, it shows that the company owns know-how, which interests other cannabis producers. This is not a problem for this name. Firstly, we have Rosebud Organics, Inc. and Budding Rose, Inc., which are medical cannabis sellers from Maryland. They signed an agreement with the company in January. MPXEF will not only provide management services. Additionally, the company acquired options to purchase 100% of these two companies. Payments of approximately $3 million and $2.4 million respectively were noted. The announcement was celebrated by many, but the CEO said the most significant words:

“The addition of a licensed processing facility will allow us to introduce the MPX brand of concentrates to a fourth State and to expand the MPX brand into another east-coast market.” Chairman, President and CEO of MPX.

The cannabis industry in this new state is very significant. According to the New Frontier, the market in Maryland is expected to be worth US$221 million by 2021. Bear in mind that there are over 8,500 patients currently certified for the use of medical marijuana and over 550 medical practitioners registered to certify patients as eligible. In our opinion, the agreements signed can mean a lot for MPX. If the market grows as expected, it should make MPX's revenues grow too.There is more. The company also signed an agreement with GreenMart of Maryland, LLC. The new partner, like the others, is authorized to operate a dispensary and sell medical cannabis products in Maryland. It also hired the company to receive its management services. But, that's not all. MPX did invest in this new partner as well. It acquired a two years option to purchase GreenMart for $2.5 million. What's going on? The company is trying to acquire a lot of licensed companies in Maryland. Will it permit MPX to control the market? That's a great question. We will be able to answer it in a few years. Read the following comment:

“With only a very limited number of licenses permitted, the GreenMart transaction strengthens our first-mover advantage in Maryland,” stated W. Scott Boyes, Chairman, President and CEO.

Finally, LMS Wellness, Benefit LLC signed a very similar agreement with MPXEF. This new partner from White Marsh suburb of Baltimore, Maryland, will also receive management services. In addition, it sold to MPXEF an option to purchase 91.27951% interest. In return, the seller received approximately $1.2 million. Also, in this case, MPXEF will pay certain expenses of LMS in the aggregate amount of approximately $0.118 million.What about the development of new products?MPXEF does not seem to constrain itself only to the delivery of management services. The agreement with Panaxia Pharmaceutical Industries Ltd. was clear evidence. Panaxia will provide the capital and equipment to one of MPXEF's subsidiary. Additionally, it will help build out and equip the manufacturing facility and will supply the non-active ingredients and compounds for formulation and packaging. That's not all. MPXEF's subsidiary also acquired exclusivity for the production and marketing of pharma-grade cannabinoid products through MPX-operated dispensaries in Arizona, Maryland, Massachusetts and Nevada with a right of first refusal in any other U.S. State, other than California, Colorado and New Mexico.We are still not sure whether it will be a game changer. However, it was a remarkable contract. Bear in mind that Panaxia is a very big operator. This company is part of a large group of manufactured pharmaceuticals with a 40 years history. It sells its products to more than 25 countries from Israel.More Developments and ConclusionAs expected, the moves of the company are finally recognized by the industry. Its inclusion in the Horizons Emerging Marijuana Growers Index ETF is another clear evidence. Additionally, it is great news. It helps the company gain exposure to investors. Furthermore, raising capital should become a little easier.

“MPX’s addition to the HMJR ETF is a significant milestone and a reflection of our growth and success to date. We anticipate our inclusion will help broaden our shareholder base and increase investor awareness,” said Scott Boyes, Chairman, President and Chief Executive Office of MPX.

Also, remarkable executives are interested in the company. The last addition was that of David McLaren, the new CFO. He is a CPA and holds Honours Bachelor of Commerce degree from McMaster University. Additionally, it brings 25 years of financial expertise, including ten years at the CFO level.Currently trading with a market cap of $164 million, MPXEF is an exciting story among small caps. With $3.8 million in cash, more acquisitions will be possible. Furthermore, its assets/liabilities ratio of 1.1x makes the balance sheet stable. To sum up, follow this name.Be sure to check out our coverage on MPXEF!We will be updating our subscribers as soon as we know more. For the latest updates on MPXEF, sign up below!Disclosure: We have no position in MPXEF and have not been compensated for this article.Image courtesy of Jurassic Blueberries via Flickr